Friday, December 19, 2008

Top 3 Things You Can Do to Become a Forex Scalper

I know it's a goal of many traders to become a successful forex scalper. I know there are lot of traders who like the activity,and the idea of going in and out of the market 5, 10, 15 times a day. But a lot of people have tried and a lot have failed.

I'm positive you have heard the statistic at one time or another, but here it is: 95% of forex traders lose money. I think it's an even a bigger amount if you were to poll forex scalpers, but it doesn't have to be this way.

Here are the top 3 things you can do to become a forex scalper:

1) Get a hold of your emotions - This is the A1 top killer of forex accounts. Certain traders just simply cannot handle the stress of being in a trade. This goes double for forex scalpers, who are in the market so often every single day.

2) Money Management is Key - The inexperienced forex scalpers sometimes trade like they are in a casino in Las Vegas. They blood is rushing and they trade so often that they can't even keep up with all their trades. Next thing you know they are completely overleveraged, and all of a sudden, they are getting a called from their broker because they just got a margin call.

3) Clear out your charts - From a technical standpoint, this is the best thing a forex scalper can do. Get rid of all those lagging indicators that so many traders plaster all over their charts. Traders don't need them. They are just a crutch. The market has price action patterns that happen every single day, hour, minute, spanning across dozens of currency pairs, which traders can use to predict future price movement.

John Templeton has been a successful forex trader after learning how to trade price action Once he understood that all he needed to trade forex was on a plain chart with no indicators, his profits soared.

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